Himachal Pradesh's Bold Move: Reshaping Financial Policies Amid Diwali Festivities

The Himachal Pradesh government, led by Chief Minister Sukhvinder Sukhu, announced the release of state employees' salaries, pensions, and pending DA on October 28. The decision aims to establish financial discipline and mitigate interest payments by averting borrowing. Plans for state self-reliance by 2027 were also revealed.

The Himachal Pradesh government is set to release the salaries and pensions of state employees on October 28, coinciding with the Diwali celebrations, announced Chief Minister Sukhvinder Sukhu. A long pending 4% Dearness Allowance from January 1, 2023, will also be released to the employees along with the dues.

The Chief Minister explained that this move is part of a broader strategy to enhance financial discipline, noting that delayed salaries help the state save approximately Rs 3 crore monthly in interest payments. This savings strategy comes from avoiding costly borrowing, a consequence of previously adhering to a strict payday schedule.

Moreover, the administration is working towards making Himachal Pradesh self-sufficient by 2027, despite the financial challenges inherited from what Sukhu described as unsustainable freebies issued by the previous government. The state's fiscal strategies now include metred charges for commercial water use and adjustments in pension schemes to ensure financial stability.

(With inputs from agencies.)